India Inflection Opportunity Fund Invests INR 500 Million in Nurture Well Foods

India Inflection Opportunity Fund (IIOF) has announced an investment of INR 500 million in Noida-based Nurture Well Foods Private Limited, a rapidly growing manufacturer of biscuits and cookies. This investment marks the sixth deal by the IIOF in the past six months.

Nurture Well Foods specializes in the production and distribution of multi-category premium biscuits and cookies under its brands “RICHLITE”, “FUNTREAT”, and “CANBERRA”. The company offers a variety of products, including butter-rich cookies and center-filled biscuits, available both in retail outlets and online. With a strong distribution network of over 150 business partners, Nurture Well covers North Indian states such as Jammu & Kashmir, Himachal Pradesh, Punjab, Rajasthan, Uttarakhand, Delhi-NCR, and Uttar Pradesh. Their products also reach international markets, including the UAE, Kuwait, Somalia, Tanzania, Afghanistan, Congo, Kenya, Rwanda, and Seychelles.

The company operates a state-of-the-art manufacturing facility in the Export Promotion Industrial Park (EPPIP) in Alwar District, Rajasthan, with a total installed capacity of approximately 32,200 MTPA. Additionally, Nurture Well has overseas subsidiaries and manufacturing tie-ups in Malaysia to leverage raw material availability and ensure a smooth global supply chain.

Nurture Well has shown robust financial growth, with an approximate top line of INR 2,750 million, growing at a CAGR of 47% from Fiscal 2021 to 2024. The company boasts strong return ratios, including a Return on Equity of 28% and a Return on Capital Employed of 24%, with a Fixed Asset Turnover of 3.8x.

“Our vision is to be a leading and innovative biscuit manufacturing company, recognized globally for our exceptional quality and diverse product range,” said Mr. Saurabh Goel, Director of Nurture Well. “We strive to delight consumers with delicious and wholesome biscuits that become their preferred choice for indulgence, comfort, and everyday snacking.”

Mr. Sanidhya Garg, another Director at Nurture Well, added, “By leveraging our market expertise alongside IIOF’s substantial financial resources, we are strategically positioned to enhance shareholder value and foster sustainable growth. This partnership lays a strong foundation for generating long-term economic value and securing a prosperous future for all stakeholders involved.”

Ms. Madhu Lunawat, CIO of India Inflection Opportunity Fund, expressed enthusiasm about the investment. “We are thrilled with our investment in Nurture Well, a standout in the multi-category biscuit segment. The FMCG industry holds immense potential, and we are confident that Nurture Well’s dedication to quality and innovation positions it perfectly to capitalize on this growth.”

According to Technopak analysis, the Indian biscuits and bakery retail market is valued at INR 570 billion in FY 2023. It is expected to grow at a 10.5% CAGR over the next three years to reach around INR 770 billion by FY 2026.